Strategic Management of Walmart

3987 WordsJan 6, 201116 Pages
Group Work Submit to Dr Andrew JENKINS Strategic Management: WAL-MART Case Analysis AGAB Nuri FAZAL Muhamed KINTEH Lamine VRINCIANU Radu Executive Summary Lamine Introduction Wal-Mart is the largest private employer in the United States and the biggest retailer in the world. The company started in 1962 with only a small number of employees and has hugely grown since then. Throughout this essay we will analyse how a small family business managed to become the leading retailer in the world. We will start by critically comment on the organisational culture of Wal-Mart. We will then apply Porter’s 5 forces Framework to this company. We will continue by undertaking a PESTEL analysis and discussing WAL-Marts key drivers…show more content…
(Porter 1980s, 1985 David B, Management, Prentice Hall, 3rd Edition 2005) The ability of a firm to earn an acceptable return on investment highly depends on how business managers handle these forces in their immediate business The objective of this script is to critically study the Wal-mart five force analyses. These five forces are the ability of potential competitors, the threat of new products, the buying power of consumer, and finally the bargaining strategies of suppliers. The threat of Competitors The most visible threat in the retail business across the United State is Competition. The quality of competition in the U S as a sub-region has significant influences on business within its borders, and these are due to the following factors; technological, economic, social and political factors. Wal- Mart is directly faced with competitors like K-mart, Target, Winco, Albertsons and wholesale retailers like Costco. The threat form is slightly different in scale putting into account the span of business activities and ability to match dominant actors. Wal-Mart`s price low cost and discount strategies often leaves less room for competition from small firms in the business and it takes the likes of Target and K-Mart to follow suit in the low cost price strategy. The level of threat is medium given the resource available, brand awareness, service strategies, economies of scale, and the available product option that
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